U.S-based crypto exchange Coinbase Inc. on Tuesday said it will reduce its total workforce by 950 employees in its third round of layoffs this year.
The company announced layoffs as a part of the restructuring and has estimated to incur a total of about $149 million to $163 million in expenses.
In a blog post, the CEO and Co-Founder, Brian Armstrong said, "In 2022, the crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion."
"I've made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people(2). All impacted team members will be informed by today," he added.
Armstrong also explained how did the company come to take this step, "As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount."
Along with cutting jobs, the crypto exchange is shutting down several projects with a lower probability of success. However, the company said it would reveal the details in next month's earnings report.
The company said it would provide a minimum of 14 weeks base pay (2 additional weeks per year worked), health insurance, and other benefits for employees who are in the U.S.
"We are also providing extra transition support for impacted employees on a work visa. Those of you outside the US will receive similar support in line with the employment laws of your country, the company added."
Earlier this year, Coinbase cut more than 60 jobs in its recruiting and institutional onboarding teams in November, after slashing 1,100 jobs, or 18% of its workforce, in June.
Read: The great crypto crash of 2022: How we got here & where we are headed